- Busha Digital Limited and Quidax Technologies Limited were granted approval-in-principle
- SEC has admitted five firms into its Regulatory Incubation Programme
- The SEC currently has the Accelerated Regulatory Incubation Programme and the Regulatory Incubation Programme
The Nigerian Securities and Exchange Commission (SEC) has confirmed that it has granted operating licences to two indigenous crypto exchanges to commence operations in the West African country.
The confirmation comes days after TheRadar reported that the SEC had granted an operating license to Quidax, an indigenous crypto exchange.
In a statement confirming the approval, the SEC said the approval-in-principle was granted to Busha Digital Limited and Quidax Technologies Limited under its Accelerated Regulatory Incubation Programme (ARIP).
“Busha operates a digital exchange that facilitates the buying and selling of crypto assets with fiat currency,” the SEC said. “It enables individuals and businesses in Nigeria and other developing economies to access basic digital asset investment services. Busha’s customers use the mobile and web applications to buy, sell, store, send, receive, trade and invest and make payments in cryptocurrencies.”
The statement further explained that “Quidax Technologies Limited operates a cryptocurrency trading platform in Nigeria. The platform leverages blockchain technology to list and trade already issued crypto tokens (assets). The services are provided via a proprietary blockchain owned and controlled by Quidax. The exchange platform is both web and mobile enabled for ease of access and use.”
Nigerian SEC to approve more crypto license applications
The statement said the approval will not be the last, adding that the SEC has admitted five firms into its Regulatory Incubation Programme (RIP) to test their models and technologies. The five firms are Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital and Blockvault Custodian Ltd, it said.
“The SEC recently introduced the ARIP to strategically on-board firms which had commenced operations prior to the release of the rules on virtual asset service Providers in May 2022. Conversely, the RI Program was created to assess the business models of digital assets firms and test innovative products, services and technology in a real-time market environment under close supervision by the SEC,” the statement revealed.
Both the Accelerated Regulatory Incubation Programme and the Regulatory Incubation Programme, the commission said, have a great reliance on Distributed Ledger Technology (DLT) for the creation and exchange of crypto assets, and that the SEC results from the cohorts will influence the SEC’s policy development.
“Tests would be conducted on a short-term and small-scale basis and the SEC would continue to work with the participating firms to agree on testing parameters as well as robust consumer safeguards,” the commission explained. “The referenced approvals-in-principle are a precursor to the grant of full registration by the SEC and are meant to ensure that appropriate protection and transparency is in place in respect of each product or service.”
The commission also explained that additional applications are being evaluated and, if they meet all requirements, may be approved in principle on a case-by-case basis.
“The SEC uses this medium to reiterate that only approved digital exchanges and platforms are legally authorised to carry out the business of crypto trading in any form in Nigeria. In this regard, the ARIP and RI remain the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian capital market.”
Binance executive detained in Nigerian prison cannot walk again, family cries out
Meanwhile, TheRadar earlier reported that the family of Tigran Gambaryan, a Binance executive detained in a prison on the outskirts of Nigeria’s federal capital, Aabuja, says his health condition has worsened, and he is now unable to walk again.
According to a statement released by the family on August 26, medical negligence by Nigerian prison officials and the Nigerian government is the reason why the Binance executive's health keeps getting worse.
“He is no longer able to walk from the pain of his untreated herniated disc or spinal injury. The prison is also refusing to provide him with a wheelchair,” the family said in the statement.
